Insurance

Predyct Analytic’s experience in the insurance industry is inclusive of Life insurance and variable annuities, property & casualty including health and HMO, and asset management. Our primary areas of emphasis include:

1. Enterprise risk management, capital adequacy and allocation of capital
2. Shareholder valuation and capital structure
3. Risk adjusted measures of financial return by business activity
4. Capital strategy
5. Transfer pricing that includes all intercompany cross subsidies
6. Ratings diagnostics

Predyct Analytic’s position is that most of an insurance company’s shareholder value performance will be determined by these six factors. There is very little product differentiation among insurance companies (insurance companies aren’t selling iPods or smart phones) so that most of a company’s shareholder value is determined by its profitable growth. Profitable growth is determined by how well a company can:

• Contain its costs, especially its marginal cost of capital
• Price its products competitively
• Allocate resources to its highest value business activities

To achieve this type of efficiency companies must be able to accurately assess how each one of its businesses is performing. This cannot be accomplished without having an extremely good understanding of where a company’s capital is allocated on a pure risk basis and the type of return that is being earned in that business. Predyct Analytics has been delivering break-through results for its clients (See case histories) for the last 15 years by diagnosing critical risk, rating and shareholder value issues years in advance allowing firms to take appropriate corrective actions. No other firm has our record of accomplishment in this area.

We look forward to hearing from you and how we might be of assistance to your firm or interest.